Suckers anyone?
Posted on 04/20/2009 12:16:57 PM PDT by Steelfish
Stocks fall as investors dump financial shares
Investors worry that banks’ recovery could be endangered by bad debt
NEW YORK - Investors are back to worrying about banks.
Long-present unease about soured loans bubbled over on Monday after Bank of America Corp. said it set aside $13.4 billion to cover lending losses even as it posted earnings that beat expectations. Other big banks have also increased loss provisions in the past two weeks.
Major market indicators tumbled more than 3 percent, including the Dow Jones industrial average, which fell 250 points.
Traders had been looking for some pullback after the Dow Jones industrial average jumped 24 percent from 12-year lows in early March, led largely by a recovery in banking stocks.
Renewed worries about banks’s stability appeared to be triggered by news reports that their lending remains tight and that the government may swap its debt in banks for ownership stakes as its $700 billion bailout fund runs down.
(Excerpt) Read more at msnbc.msn.com ...
There is no recovery, calling a dog a cat has never worked.
No problem, the MSN is reporting Obama ordered his cabinet chiefs to cut $100 million from his 4,000 billion ($4 trillion) in new government spending.
So....the pizza guy won’t be flown in again until next year?
I’ll take lemon, thank you. (even though it is not a choice)
Because “lemon” is what this whole bail-out scheme has become. There has been NO effort to separate out the toxic mortgage products upon which this whole facade has been built, the junk just stays in there, continuing to work its mischief.
Worse, now that the financial framework is so thoroughly undermined and weakened, the least teeter the wrong way, and down it goes, like the proverbial house of cards. This is something like the build-up of an avalanche overhang, then when it does break loose, everything in its path is wiped out.
Beyond that, after the collapse has come, there is no engine left in place to get the system restarted. Even small amounts of capital will be effectively dissipated when the new “carbon cap and trade” taxation kicks in, making the widescale production of electrical energy prohibitively expensive, because of its concentration on coal-fired steam generation plants. Now that demand is down, and plants are being shut down or idled, there is not much of a noticable problem. Only when the industrial infrastructure tries to ramp back up, is the really punishing effects of this policy to be seen.
And all other alternatives (natural gas, petroleum fired, nuclear, or even hydroelectric plants) have been ruled out, relying instead on wind and solar power generation facilities that have not even been designed or located, let alone built and up running reliably (which shall be NEVER).
>> Investors are back to worrying about banks.
Investors never STOPPED worrying about the financials.
Then too, it’s not “investors” that are responsible for the recent sucker rally.
This whole thing was so obvios: Accounting rules change and within a week or two the banks show record profits?!
HAHAHAHA!
I was LITERALLY laughing out loud at that when I saw the first one. Just how stupid can people be?
Dead serious.
The Market fears that the Government, in order to inject additional capital into troubled banks, will convert its preferred stock into equity. The equity would make the Gov’t a significant minority owner at least. The Gov’t would then really start calling the tune, telling the banks to do things it considers socially desirable which the banks consider not in their best interest.
Nothing real has happened to make the economy rebound, and these little bubbles in 0’s pop economy will continue to burst. From nothing comes nothing, and from zero comes 0.
“Worse, now that the financial framework is so thoroughly undermined and weakened, the least teeter the wrong way, and down it goes, like the proverbial house of cards. This is something like the build-up of an avalanche overhang, then when it does break loose, everything in its path is wiped out.”
I think I would have been much happier spending on helping the citizenry get through the mess of letting it go down so we can get it all out of the way and start fresh. The financial system as it currently exists is nothing but a blackhole that was created in an era of anything goes financing and nobody knows just how deep the hole goes.
There will be no recovery until we find the bottom of it, and the more we keep tying to cover it up, the longer it will take to get there and we will just keep sputtering.
Really stupid. That's why I cashed out earlier and will sit on the sidelines for a bit. Wait for more bargains then flip and run.
not me, i fought the urge and did not jump back in...whew!!!
Yep. I saw this runnup and jumped at the opportunity to cut my losses.
IBM getting hammered after hours (-3%), following its earnings report.
I sold into this rally last week.
Look at TOTUS.
Suicidally EPIC stupid.
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